DCF Valuation
Tao of Corporate Finance
The value formula from Valuation: Measuring and Managing the Value of Companies by McKinsey & Company (also referred to as the Tao of Corporate Finance) is: Value=NOPAT×(1−g/ROIC)WACC−gValue = […]
Archive
Category: [:en]ROIC[:]
Growth
DuPont Analysis
Sure, here’s the translation: When making a price-sensitive purchase decision, it’s important to evaluate the financial performance of the organization. This careful scrutiny doesn’t replace market research but […]
Real Estate Development
Deliver Profitability in RE Development
How to Make a Construction-Development Project Profitable?
ROIC
Stability of ROIC
What determines an organization’s value?Value = (Price – Cost) / Invested Capital Edward Mason’s Structure-Conduct-Performance model (which is based on Michael Porter’s frameworks) suggests that an organization’s created […]
Growth
Zen
When discussing the evaluation of startups using the #VC method, one interesting point comes to mind: As I mentioned earlier, investment funds should provide an answer to the […]
Growth
Value Drivers
Understanding what creates value and how it is created is critically important. A good format to grasp this is through a value creation tree diagram: First, let’s start […]
Other Valuation Methods
Capital Light Business & ROIC
Some business models inherently involve very small amounts of capital, making the use of ROIC (Return on Invested Capital) impractical for evaluation. When the scale of profit relative […]